Asian Stocks Rise Most in Week as Japanese Banks Jump

By Kana Nishizawa -
Jan 29, 2013

Asian stocks rose, with the regional
benchmark index headed for its biggest gain in a week, as
Japan’s largest lenders jumped on speculation a recent share
rally will boost profit. Australia’s market capped its longest
rising streak since 2004 and Korean shares rebounded from
yesterday’s loss.

Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest bank,
rose 3.8 percent in Tokyo. Adani Ports and Special Economic
Zone, a shipping port operator, surged 6.6 percent in Mumbai
after a report the company will spend $235 million on expansion.
Industrial & Commercial Bank of China Ltd., the world’s largest
lender by market value, slid 2.2 percent in Hong Kong after
Goldman Sachs raised about $1 billion from selling a stake in
the company.

The MSCI Asia Pacific Index rose 0.9 percent to 132.53 as
of 7:14 p.m. in Tokyo, headed for its biggest advance since Jan.
18, with more than twice as many shares rising as declining. The
gauge jumped 9.6 percent from Nov. 14 through yesterday, led by
Japanese shares on optimism Prime Minister Shinzo Abe’s new
government will take the necessary steps to fight deflation.

“Investors are becoming risk-on from risk-off,” said
Naoki Fujiwara, chief fund manager at Shinkin Asset Management
Co., which oversees about $5.5 billion. “With the U.S. economy
on a recovery path, and Europe and China bottoming out, more
people are becoming bullish on stocks in the mid- to long-
term.”

The MSCI Asia Pacific Index, the benchmark regional
equities gauge, traded at 14.4 times average estimated earnings
compared with 13.6 for the Standard & Poor’s 500 Index and 12.3
times for the Stoxx Europe 600 Index, according to data compiled
by Bloomberg.

Bank Earnings

The rebound in Japanese stocks, fueled by Prime Minister
Shinzo Abe’s pledge to stimulate the economy, probably helped
banks make up some of the losses they incurred on their equity
holdings in the fiscal first half, said analysts at UBS AG and
BNP Paribas SA. Signs are emerging that domestic lending is

Adani Ports surged 6.6 percent to 145.8 rupees in Mumbai.
The company is planning to use more than $235 million fund to
expand in India’s east coast, the Economic Times reported,
citing Chief Financial Officer B Ravi. The company yesterday
also reported a third-quarter profit that beat analyst
estimates.

Samsung Climbs

Samsung C&T Corp. (000830) gained 6.8 percent to 64,300 won in Seoul
after the construction and trading company’s fourth-quarter
operating profit beat estimates and the stock was raised to buy
at Kyobo Securities Co. Samsung Electronics Co. (005930), the world’s
largest maker of smartphones, climbed 2.7 percent to 1.409
million won after yesterday closing at its lowest since Nov. 20.

Futures on the S&P 500 Index were little changed today. The
gauge yesterday dropped as a decline in pending home sales
outweighed a gain in durable-goods orders, while investors
watched company earnings reports. The gauge closed at its
highest level since October 2007 on Jan. 25 after capping its
longest daily win streak since 2004.